A Mail-Order Business Prides Itself in Its Ability to Fill

question 33

Multiple Choice

A mail-order business prides itself in its ability to fill customers' orders in less than six calendar days, on average. Periodically, the operations manager selects a random sample of customer orders and determines the number of days required to fill the orders. On one occasion when a sample of 30 orders was selected, the average number of days was 6.65 with a sample standard deviation of 1.5 days. Assume the time in which an order is filled is normally distributed.

-Set up the null and alternative hypotheses to test whether the standard is being violated.

• A)H₀: ? = 6 vs.H_a: ? ? 6
• B)H₀: ? ? 6.65 vs.H_a: ? < 6.65
• C)H₀: ? ? 6 vs.H_a: ? < 6
• D)H₀: ? ? 6 vs.H_a: ? = 6
• E)H₀: ? ? 6 vs.H_a: ? > 6

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Definitions:

Work In Process

Partially finished goods that are still in the production process, representing a component of inventory costs on the balance sheet.

T-Accounts

A visual representation of accounts in the general ledger of a company, used to understand the effects of transactions on each account.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating manufacturing overhead costs.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured.